The Department of Energy (DOE) has endorsed the Manila Electric Co. (Meralco) idea to cap the offer of proponents under its competitive selection process (CSP) to encourage bidder participation and ensure success.
Where Meralco requires 1,800 megawatts, the power distributor capped the maximum offer by each proponent to 1,200 megawatts.
Jose Ronald Valles, Meralco first vice president and head of regulatory management, said the agreement resulted to the supply of the required 1,800 megawatt from at least two power companies.
Meralco said the bid date for the 1,800 CSP had been set to 27 December this year. This much power Meralco needs by December 2024.
According to Valles, the required 1,800 megawatts of capacity has thus far attracted six bidders.
He said Meralco has advised the DOE that the adjustment had been incorporated in the terms of reference and that it was seeking guidance from the Energy Regulatory Commission if the CSP can proceed as scheduled on 27 December this year on this basis.
“Unless the ERC chair tells us otherwise, then we will proceed since there is not enough time for us to complete the bidding,” Valles said.
Meralco has said the CSP will replace the capacity covered by its 2021 power supply agreements with Excellent Energy Resources Inc. and Masinloc Power Partners Co. Ltd. which was terminated earlier this year.
